If you are buying or selling real estate, you may have heard the term “appraisal contingency“ thrown about by your real estate agent. But do you really understand what it means? Do you know how it affects you? Whether you are buying or selling real estate, if the transaction is being financed, the appraisal contingency is very important. Let’s back up a second. What is an appraisal? Well, when you engage a lender to finance your transaction, they will typically order an appraisal to determine the value of the property you are purchasing. The actual appraisal is handled by a third-party company. Neither your loan officer nor your bank is personally handling the appraisal. What does the appraisal entail? Well, once the appraisal is ordered, an appraiser will be sent out to look at your property. Usually the appraiser will not only go inside and look around, but also… read more →
